Accounting Software for the Service-Oriented Business

What Type of Service Company Do You Need Software for?

With the variety of options available, it's important to find the right software program for your type of service company. When it comes to finding the right software, service oriented companies can generally be divided into two groups: professional service and commercial service companies. Architects, engineers, lawyers, and consultants all provide very different services, but their work is generally described as "professional services." Companies offering what could be described as "commercial services" provide more "blue-collar" type of services. There is often a manual or physical aspect to the work performed. Commercial service companies are also more likely to have B2C operations, though they can be B2B as well. Examples of commercial service companies include maintenance companies, lawn service providers, and auto-body shops, for example. There are numerous similarities in the way that commercial service companies work and it's important to find a program that addresses the unique issues of the commercial service provider.

Software Designed for Service Companies

The reality is that accounting for service operations is different than accounting for a company that sells products. Service companies have specific requirements: billing is often based on time, off-site work is frequently performed, the type of financial reports needed can vary, and a client-centric approach to managing and presenting data is imperative. Finding a solution optimized for the way your service company works can make a big difference in leveraging cost-savings and growth from your software investment.

Comprehensive Accounting Software

Accounting software packages designed for providers of services also offer a full range of financial management tools. Accounting features include the ability to print checks, pay bills, track expenses, manage payroll, create orders and invoices, manage receivables, establish budgets, perform bank reconciliations, and create top level financial reports.

Accounting for Recurring Work

The ability to track time and schedule service work is critical for service businesses. Many commercial service businesses use work order management tools to schedule technicians and other staff. Work order management is optimized for tracking regular service work and includes the ability to bill by set rates or time worked for specific services. Professional services companies are more likely to use a time and billing module, which doesn't offer the flexibility in billing for expenses or parts. Contractor businesses typically use job costing, which is designed for tracking costs on jobs where the expenses, material, and labor requirement shift dramatically from job to job. For most commercial and service companies, work order management will be the best choice as it provides tools designed to assist the technician or service provider with their recurring service jobs.